Kohl's (KSS) 10-Q 2 Dec 21 2022 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Oct. 30, 2021	Nov. 26, 2021
Cover [Abstract]
Entity Registrant Name	KOHL’S CORP
Entity Central Index Key	0000885639
Current Fiscal Year End Date	--01-30
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Oct. 30, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		139,158,063
Document Quarterly Report	true
Document Transition Report	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Incorporation, State or Country Code	WI
Entity Tax Identification Number	39-1630919
Entity File Number	1-11084
Entity Address, Address Line One	N56 W17000 Ridgewood Drive
Entity Address, City or Town	Menomonee Falls
Entity Address, State or Province	WI
Entity Address, Postal Zip Code	53051
City Area Code	262
Local Phone Number	703-7000
Title of each class	Common Stock, $.01 par value
Trading Symbol(s)	KSS
Name of each exchange on which registered	NYSE

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Oct. 30, 2021	Jan. 30, 2021	Oct. 31, 2020
Current assets:
Cash and cash equivalents	$ 1,873	$ 2,271	$ 1,939
Merchandise inventories	3,642	2,590	3,607
Other	373	974	450
Total current assets	5,888	5,835	5,996
Property and equipment, net	7,329	6,689	6,876
Operating leases	2,293	2,398	2,422
Other assets	441	415	150
Total assets	15,951	15,337	15,444
Current liabilities:
Accounts payable	2,135	1,476	2,184
Accrued liabilities	1,545	1,270	1,272
Current portion of:
Finance lease and financing obligations	117	115	127
Operating leases	142	161	160
Total current liabilities	3,939	3,022	3,743
Long-term debt	1,909	2,451	2,450
Finance lease and financing obligations	2,072	1,387	1,402
Operating leases	2,537	2,625	2,644
Deferred income taxes	196	302	74
Other long-term liabilities	367	354	293
Shareholders’ equity:
Common stock	4	4	4
Paid-in capital	3,362	3,319	3,303
Treasury stock, at cost	(12,426)	(11,595)	(11,594)
Retained earnings	13,991	13,468	13,125
Total shareholders’ equity	4,931	5,196	4,838
Total liabilities and shareholders’ equity	$ 15,951	$ 15,337	$ 15,444

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 30, 2021	Oct. 31, 2020	Oct. 30, 2021	Oct. 31, 2020
Total revenue	$ 4,600	$ 3,979	$ 12,934	$ 9,814
Cost of merchandise sold	2,623	2,424	7,282	6,360
Operating expenses:
Selling, general, and administrative	1,380	1,302	3,791	3,418
Depreciation and amortization	210	210	631	656
Impairments, store closing, and other costs	0	21	0	85
(Gain) on sale of real estate	0	0	0	(127)
Operating income (loss)	387	22	1,230	(578)
Interest expense, net	66	78	195	214
Loss on extinguishment of debt	0	0	201	0
Income (loss) before income taxes	321	(56)	834	(792)
Provision (benefit) from income taxes	78	(44)	195	(286)
Net income (loss)	$ 243	$ (12)	$ 639	$ (506)
Net income (loss) per share:
Basic	$ 1.67	$ (0.08)	$ 4.24	$ (3.28)
Diluted	$ 1.65	$ (0.08)	$ 4.19	$ (3.28)
Net Sales [Member]
Total revenue	$ 4,366	$ 3,779	$ 12,251	$ 9,152
Other Revenue [Member]
Total revenue	$ 234	$ 200	$ 683	$ 662

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Millions	Total	Common Stock [Member]	Paid-In Capital [Member]	Treasury Stock at Cost [Member]	Retained Earnings [Member]
Balance, beginning of period at Feb. 01, 2020		$ 4	$ 3,272	$ (11,571)	$ 13,745
Treasury stock purchases				(8)
Stock-based awards			31	(21)
Net income (loss)	$ (506)				(506)
Dividends paid				6	(114)
Balance, end of period at Oct. 31, 2020	$ 4,838	$ 4	3,303	$ (11,594)	13,125
Shares, beginning of period at Feb. 01, 2020		375		(219)
Stock-based awards		2
Shares, end of period at Oct. 31, 2020	158	377		(219)
Dividends paid per common share	$ 0.704
Balance, beginning of period at Aug. 01, 2020		$ 4	3,290	$ (11,594)	13,137
Stock-based awards			13
Net income (loss)	$ (12)				(12)
Balance, end of period at Oct. 31, 2020	$ 4,838	$ 4	3,303	$ (11,594)	13,125
Shares, beginning of period at Aug. 01, 2020		377		(219)
Shares, end of period at Oct. 31, 2020	158	377		(219)
Balance, beginning of period at Jan. 30, 2021	$ 5,196	$ 4	3,319	$ (11,595)	13,468
Treasury stock purchases				(807)
Stock-based awards			43	(26)
Net income (loss)	639				639
Dividends paid				2	(116)
Balance, end of period at Oct. 30, 2021	$ 4,931	$ 4	3,362	$ (12,426)	13,991
Shares, beginning of period at Jan. 30, 2021		377		(219)
Treasury stock purchases				(16)
Shares, end of period at Oct. 30, 2021	142	377		(235)
Dividends paid per common share	$ 0.75
Balance, beginning of period at Jul. 31, 2021		$ 4	3,349	$ (11,920)	13,786
Treasury stock purchases				(506)
Stock-based awards			13	(1)
Net income (loss)	$ 243				243
Dividends paid				1	(38)
Balance, end of period at Oct. 30, 2021	$ 4,931	$ 4	$ 3,362	$ (12,426)	$ 13,991
Shares, beginning of period at Jul. 31, 2021		377		(225)
Treasury stock purchases				(10)
Shares, end of period at Oct. 30, 2021	142	377		(235)
Dividends paid per common share	$ 0.25

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Oct. 30, 2021	Oct. 31, 2020
Operating activities
Net income (loss)	$ 639	$ (506)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	631	656
Share-based compensation	35	26
Deferred income taxes	(103)	(181)
Impairments, store closing, and other costs		49
(Gain) on sale of real estate	0	(127)
Loss on extinguishment of debt	201	0
Non-cash inventory costs		187
Non-cash lease expense	107	111
Other non-cash expense	10	15
Changes in operating assets and liabilities:
Merchandise inventories	(1,044)	(251)
Other current and long-term assets	574	(45)
Accounts payable	659	978
Accrued and other long-term liabilities	172	111
Operating lease liabilities	(107)	(113)
Net cash provided by operating activities	1,774	910
Investing activities
Acquisition of property and equipment	(426)	(264)
Proceeds from sale of real estate	35	194
Net cash used in investing activities	(391)	(70)
Financing activities
Proceeds from issuance of debt	500	2,097
Deferred financing costs	(8)	(19)
Treasury stock purchases	(807)	(8)
Shares withheld for taxes on vested restricted shares	(26)	(21)
Dividends paid	(114)	(108)
Reduction of long-term borrowings	(1,044)	(1,497)
Premium paid on redemption of debt	(192)
Finance lease and financing obligation payments	(96)	(72)
Proceeds from stock option exercises	1
Proceeds from financing obligations	8	4
Other	(3)
Net cash (used in) provided by financing activities	(1,781)	376
Net (decrease) increase in cash and cash equivalents	(398)	1,216
Cash and cash equivalents at beginning of period	2,271	723
Cash and cash equivalents at end of period	1,873	1,939
Supplemental information
Interest paid, net of capitalized interest	167	159
Income taxes paid	$ 221	$ 138

Basis of Presentation

Basis of Presentation	9 Months Ended
	Oct. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	1. Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for fiscal year end Consolidated Financial Statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. For further information, refer to the Consolidated Financial Statements and related footnotes included in our Annual Report on Form 10-K for the fiscal year ended January 30, 2021 (Commission File No. 1-11084) as filed with the Securities and Exchange Commission. Due to the seasonality of the business of Kohl’s Corporation (the “Company,” “Kohl’s,” “we,” “our,” or “us”) and the uncertainty surrounding the financial impact of the novel coronavirus (“COVID-19”) pandemic, results for any quarter are not necessarily indicative of the results that may be achieved for a full fiscal year. We operate as a single business unit. Recent Accounting Pronouncements We adopted the new accounting standard on simplifying the accounting for income taxes ( ASU 2019-12 ), effective at the beginning of fiscal 2021. The transition method (retrospective, modified retrospective, or prospective basis) related to the amendments depends on the applicable guidance, and all amendments for which there is no transition guidance specified are to be applied on a prospective basis. There was no material impact on our financial statements due to adoption of the new standard.

Revenue Recognition

Revenue Recognition	9 Months Ended
	Oct. 30, 2021
Revenue from Contract with Customer [Abstract]
Revenue Recognition	2. Revenue Recognition The following table summarizes net sales by line of business: Three Months Ended Nine Months Ended (Dollars in Millions) October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 Women's $ 1,165 $ 1,025 $ 3,626 $ 2,569 Men's 933 711 2,562 1,672 Home 680 700 1,923 1,840 Children's 678 593 1,609 1,257 Footwear 476 389 1,326 959 Accessories 434 361 1,205 855 Net Sales $ 4,366 $ 3,779 $ 12,251 $ 9,152 Unredeemed gift cards and merchandise return card liabilities totaled $ 273 million as of October 30, 2021, $ 339 million as of January 30, 2021, and $ 272 million as of October 31, 2020. Revenue of $ 138 million was recognized during the current year from the January 30, 2021 ending balance.

Debt

Debt	9 Months Ended
	Oct. 30, 2021
Debt Disclosure [Abstract]
Debt	3. Debt Long-term debt, which includes draws on the revolving credit facility, consists of the following unsecured debt: Outstanding Maturity Effective Coupon October 30, 2021 January 30, 2021 October 31, 2020 2023 3.25 % 3.25 % $ 164 $ 350 $ 350 2023 4.78 % 4.75 % 111 184 184 2025 9.50 % 9.50 % 113 600 600 2025 4.25 % 4.25 % 353 650 650 2029 7.36 % 7.25 % 42 42 42 2031 3.40 % 3.38 % 500 — — 2033 6.05 % 6.00 % 112 113 113 2037 6.89 % 6.88 % 101 101 101 2045 5.57 % 5.55 % 427 427 427 Outstanding unsecured senior debt 1,923 2,467 2,467 Unamortized debt discounts and deferred financing costs ( 14 ) ( 16 ) ( 17 ) Unsecured senior debt $ 1,909 $ 2,451 $ 2,450 Effective interest rate 4.89 % 5.90 % 5.90 % Our unsecured senior long-term debt is classified as Level 1, financial instruments with unadjusted, quoted prices listed on active market exchanges. The estimated fair value of our unsecured senior debt was $ 2.1 billion at October 30, 2021, $ 2.8 billion at January 30, 2021, and $ 2.6 billion at October 31, 2020. In March 2021, we issued $ 500 million in aggregate principal amount of 3.375 % notes with semi-annual interest payments beginning in November 2021 . The notes include coupon rate step ups if our long-term debt is downgraded to below a BBB- credit rating by S&P Global Ratings or Baa3 by Moody’s Investors Service, Inc. The notes mature in May 2031 . Proceeds of the issuance and cash on hand were used to pay the principal, premium, and accrued interest of the notes which were purchased as part of the cash tender offer in April 2021. In April 2021, we completed a cash tender offer for $ 1.0 billion of senior unsecured debt. We recognized a $ 201 million loss on extinguishment of debt in the first quarter of 2021, which includes the $ 192 million tender premium paid to tendering note holders in accordance with the terms of the tender offer, a $ 6 million non-cash write-off of deferred financing costs and original issue discounts associated with the extinguished debt, and $ 3 million in other fees. In October 2021, we entered into a Credit Agreement with various lenders which provides for a $ 1.0 billion senior unsecured five-year revolving credit facility that will mature in October 2026 and replaces our existing senior secured revolving credit facility. Among other things, the agreement includes a maximum leverage ratio financial covenant and restrictions on liens and subsidiary indebtedness, all of which are generally consistent with the prior 2019 senior unsecured five-year revolving credit facility. We may request an increase in revolving credit commitments under the facility of up to $ 500 million in certain circumstances. Events of default under the Credit Agreement include, among other things, a change of control of the Company and the Company’s default on other debt exceeding $ 75 million. No borrowings were outstanding on the credit facility in place as of October 30, 2021, January 30, 2021, or October 31, 2020. Our various debt agreements contain covenants including limitations on additional indebtedness and certain financial tests. As of October 30, 2021, we were in compliance with all covenants of the various debt agreements.

Leases

Leases	9 Months Ended
	Oct. 30, 2021
Leases [Abstract]
Leases	4. Leases We lease certain property and equipment used in our operations. Some of our store leases include additional rental payments based on a percentage of sales over contractual levels or which are adjusted periodically for inflation. Our typical store lease has an initial term of 20 to 25 years and four to eight five-year renewal options. Lease assets represent our right to use an underlying asset for the lease term. Lease assets are recognized at commencement date based on the value of the lease liability and are adjusted for any lease payments made to the lessor at or before commencement date, minus any lease incentives received and any initial direct costs incurred by the lessee. Lease liabilities represent our contractual obligation to make lease payments. At the commencement date, the lease liabilities equal the present value of minimum lease payments over the lease term. As the implicit interest rate is not readily identifiable in our leases, we estimate our collateralized borrowing rate to calculate the present value of lease payments. Leases with a term of 12 months or less are excluded from the balance; we recognize lease expense for these leases on a straight-line basis over the lease term. We combine lease and non-lease components for new and modified leases. We opened 200 Sephora shop-in-shops within our Kohl's stores in the fall of 2021. Due to the investments we made in the shop-in-shops, we reassessed our lease term when construction began as these assets will have significant economic value to us when the lease term becomes exercisable. The impact of these assessments resulted in additional lease term, additional lease assets and liabilities, and, in some cases, changes to the classification. The following tables summarize our operating and finance leases and where they are presented in our Consolidated Financial Statements: Consolidated Balance Sheets (Dollars in Millions) Classification October 30, 2021 January 30, 2021 Assets Operating leases Operating leases $ 2,293 $ 2,398 Finance leases Property & equipment, net 1,389 708 Total operating & finance leases 3,682 3,106 Liabilities Current Operating leases Current portion of operating leases 142 161 Finance leases Current portion of finance leases & financing obligations 86 76 Noncurrent Operating leases Operating leases 2,537 2,625 Finance leases Finance leases & financing obligations 1,620 926 Total operating & finance leases $ 4,385 $ 3,788 Consolidated Statement of Operations Three Months Ended Nine Months Ended (Dollars in Millions) Classification October 30, 2021 October 30, 2021 Operating leases Selling, general, and administrative $ 71 $ 227 Finance Leases Amortization of leased assets Depreciation and amortization 27 70 Interest on leased assets Interest expense, net 29 81 Total operating & finance leases $ 127 $ 378 Consolidated Statement of Cash Flows Nine Months Ended (Dollars in Millions) October 30, 2021 Cash paid for amounts included in the measurement of leased liabilities Operating cash flows from operating leases $ 236 Operating cash flows from finance leases 81 Financing cash flows from finance leases 71 The following table summarizes future lease payments by fiscal year: October 30, 2021 (Dollars in millions) Operating Leases Finance Leases Total 2021 $ 69 $ 50 $ 119 2022 289 193 482 2023 278 176 454 2024 247 161 408 2025 234 155 389 After 2025 3,541 2,685 6,226 Total lease payments $ 4,658 $ 3,420 $ 8,078 Amount representing interest ( 1,979 ) ( 1,714 ) ( 3,693 ) Lease liabilities $ 2,679 $ 1,706 $ 4,385 The following table summarizes weighted-average remaining lease term and discount rate: October 30, 2021 January 30, 2021 Weighted-average remaining term (years) Operating leases 20 19 Finance leases 20 18 Weighted-average discount rate Operating leases 6 % 6 % Finance leases 7 % 10 % Other lease information is as follows: Nine Months Ended Nine Months Ended (Dollars in Millions) October 30, 2021 October 31, 2020 Property and equipment acquired through: Finance lease liabilities $ 755 $ 118 Operating lease liabilities 8 140 Financing Obligations The following tables summarize our financing obligations and where they are presented in our Consolidated Financial Statements: Consolidated Balance Sheets (Dollars in millions) Classification October 30, 2021 January 30, 2021 Assets Financing obligations Property & equipment, net $ 57 $ 65 Liabilities Current Current portion of finance leases & financing obligations 31 39 Noncurrent Finance leases & financing obligations 452 461 Total financing obligations $ 483 $ 500 Consolidated Statement of Operations Three Months Ended Nine Months Ended (Dollars in Millions) Classification October 30, 2021 October 30, 2021 Amortization of financing obligation assets Depreciation and amortization 2 7 Interest on financing obligations Interest expense, net 11 30 Total financing obligations $ 13 $ 37 Consolidated Statement of Cash Flows Nine Months Ended (Dollars in Millions) October 30, 2021 Cash paid for amounts included in the measurement of financing obligations Operating cash flows from financing obligations $ 30 Financing cash flows from financing obligations 25 Proceeds from financing obligations 8 The following table summarizes future financing obligation payments by fiscal year: October 30, 2021 (Dollars in millions) Financing Obligations 2021 $ 16 2022 73 2023 71 2024 67 2025 58 After 2025 486 Total lease payments $ 771 Non-cash gain on future sale of property 207 Amount representing interest ( 495 ) Financing obligation liability $ 483 The following table summarizes the weighted-average remaining term and discount rate for financing obligations: October 30, 2021 January 30, 2021 Weighted-average remaining term (years) 10 8 Weighted-average discount rate 9 % 7 %

Stock-Based Awards

Stock-Based Awards	9 Months Ended
	Oct. 30, 2021
Share-based Payment Arrangement [Abstract]
Stock-Based Awards	5. Stock-Based Awards The following table summarizes our stock-based awards activity for the nine months ended October 30, 2021: Stock Options Nonvested Stock Awards Performance Share Units (Shares and Units in Thousands) Shares Weighted Shares Weighted Units Weighted Balance - January 30, 2021 36 $ 52.15 3,451 $ 32.09 1,037 $ 49.95 Granted — — 657 55.83 220 58.55 Exercised/vested ( 23 ) 54.00 ( 1,126 ) 35.36 ( 211 ) 72.21 Forfeited/expired ( 1 ) 51.27 ( 170 ) 33.47 ( 33 ) 30.42 Balance - October 30, 2021 12 $ 48.66 2,812 $ 36.25 1,013 $ 47.82 In 2019, we issued 1,747,441 stock warrants. The total vested and unvested warrants as of October 30, 2021 were 698,977 and 1,048,464 , respectively.

Contingencies

Contingencies	9 Months Ended
	Oct. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Contingencies	6. Contingencies We are subject to certain legal proceedings and claims arising out of the conduct of our business. In the opinion of management, the outcome of these proceedings and litigation will not have a material adverse impact on our Consolidated Financial Statements.

Income Taxes

Income Taxes	9 Months Ended
	Oct. 30, 2021
Income Tax Disclosure [Abstract]
Income Taxes	7. Income Taxes The third quarter and year to date 2021 resulted in income tax expense driven by book income. The effective income tax rate in the third quarter and year to date 2020 was driven by the net loss due to the temporary closure of our stores and the benefit of the net loss carryback to years with a federal statutory tax rate of 35 %.

Net Income (Loss) Per Share

Net Income (Loss) Per Share	9 Months Ended
	Oct. 30, 2021
Earnings Per Share [Abstract]
Net Income (Loss) Per Share	8. Net Income (Loss) Per Share Basic Net income (loss) per share is Net income (loss) divided by the average number of common shares outstanding during the period. Diluted Net income (loss) per share includes incremental shares assumed for share-based awards and stock warrants. Potentially dilutive shares include stock options, unvested restricted stock units and awards, and warrants outstanding during the period, using the treasury stock method. Potentially dilutive shares are excluded from the computations of diluted earnings per share (“EPS”) if their effect would be anti-dilutive. The information required to compute basic and diluted Net income (loss) per share is as follows: Three Months Ended Nine Months Ended (Dollar and Shares in Millions, Except per Share Data) October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 Numerator—Net income (loss) $ 243 $( 12 ) $ 639 $( 506 ) Denominator—Weighted-average shares: Basic 145 154 151 154 Dilutive impact 2 — 2 — Diluted 147 154 153 154 Net income (loss) per share: Basic $ 1.67 $( 0.08 ) $ 4.24 $( 3.28 ) Diluted $ 1.65 $( 0.08 ) $ 4.19 $( 3.28 ) The following potential shares of common stock were excluded from the diluted Net income (loss) per share calculation because their effect would have been anti-dilutive: Three Months Ended Nine Months Ended October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 Anti-dilutive shares 3 6 3 6

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
	Oct. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements We adopted the new accounting standard on simplifying the accounting for income taxes ( ASU 2019-12 ), effective at the beginning of fiscal 2021. The transition method (retrospective, modified retrospective, or prospective basis) related to the amendments depends on the applicable guidance, and all amendments for which there is no transition guidance specified are to be applied on a prospective basis. There was no material impact on our financial statements due to adoption of the new standard.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
	Oct. 30, 2021
Revenue from Contract with Customer [Abstract]
Schedule of Net Sales by Line of Business	The following table summarizes net sales by line of business: Three Months Ended Nine Months Ended (Dollars in Millions) October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 Women's $ 1,165 $ 1,025 $ 3,626 $ 2,569 Men's 933 711 2,562 1,672 Home 680 700 1,923 1,840 Children's 678 593 1,609 1,257 Footwear 476 389 1,326 959 Accessories 434 361 1,205 855 Net Sales $ 4,366 $ 3,779 $ 12,251 $ 9,152

Debt (Tables)

Debt (Tables)	9 Months Ended
	Oct. 30, 2021
Debt Disclosure [Abstract]
Components of Long-term Debt	Long-term debt, which includes draws on the revolving credit facility, consists of the following unsecured debt: Outstanding Maturity Effective Coupon October 30, 2021 January 30, 2021 October 31, 2020 2023 3.25 % 3.25 % $ 164 $ 350 $ 350 2023 4.78 % 4.75 % 111 184 184 2025 9.50 % 9.50 % 113 600 600 2025 4.25 % 4.25 % 353 650 650 2029 7.36 % 7.25 % 42 42 42 2031 3.40 % 3.38 % 500 — — 2033 6.05 % 6.00 % 112 113 113 2037 6.89 % 6.88 % 101 101 101 2045 5.57 % 5.55 % 427 427 427 Outstanding unsecured senior debt 1,923 2,467 2,467 Unamortized debt discounts and deferred financing costs ( 14 ) ( 16 ) ( 17 ) Unsecured senior debt $ 1,909 $ 2,451 $ 2,450 Effective interest rate 4.89 % 5.90 % 5.90 %

Leases (Tables)

Leases (Tables)	9 Months Ended
	Oct. 30, 2021
Leases [Abstract]
Summary of Operating and Finance Leases	The following tables summarize our operating and finance leases and where they are presented in our Consolidated Financial Statements: Consolidated Balance Sheets (Dollars in Millions) Classification October 30, 2021 January 30, 2021 Assets Operating leases Operating leases $ 2,293 $ 2,398 Finance leases Property & equipment, net 1,389 708 Total operating & finance leases 3,682 3,106 Liabilities Current Operating leases Current portion of operating leases 142 161 Finance leases Current portion of finance leases & financing obligations 86 76 Noncurrent Operating leases Operating leases 2,537 2,625 Finance leases Finance leases & financing obligations 1,620 926 Total operating & finance leases $ 4,385 $ 3,788 Consolidated Statement of Operations Three Months Ended Nine Months Ended (Dollars in Millions) Classification October 30, 2021 October 30, 2021 Operating leases Selling, general, and administrative $ 71 $ 227 Finance Leases Amortization of leased assets Depreciation and amortization 27 70 Interest on leased assets Interest expense, net 29 81 Total operating & finance leases $ 127 $ 378 Consolidated Statement of Cash Flows Nine Months Ended (Dollars in Millions) October 30, 2021 Cash paid for amounts included in the measurement of leased liabilities Operating cash flows from operating leases $ 236 Operating cash flows from finance leases 81 Financing cash flows from finance leases 71
Summary of Future Lease Payments	The following table summarizes future lease payments by fiscal year: October 30, 2021 (Dollars in millions) Operating Leases Finance Leases Total 2021 $ 69 $ 50 $ 119 2022 289 193 482 2023 278 176 454 2024 247 161 408 2025 234 155 389 After 2025 3,541 2,685 6,226 Total lease payments $ 4,658 $ 3,420 $ 8,078 Amount representing interest ( 1,979 ) ( 1,714 ) ( 3,693 ) Lease liabilities $ 2,679 $ 1,706 $ 4,385
Summary of Weighted-Average Remaining Lease Term and Discount Rates	The following table summarizes weighted-average remaining lease term and discount rate: October 30, 2021 January 30, 2021 Weighted-average remaining term (years) Operating leases 20 19 Finance leases 20 18 Weighted-average discount rate Operating leases 6 % 6 % Finance leases 7 % 10 %
Summary of Other Lease Information	Other lease information is as follows: Nine Months Ended Nine Months Ended (Dollars in Millions) October 30, 2021 October 31, 2020 Property and equipment acquired through: Finance lease liabilities $ 755 $ 118 Operating lease liabilities 8 140
Summary of Financing Obligations	The following tables summarize our financing obligations and where they are presented in our Consolidated Financial Statements: Consolidated Balance Sheets (Dollars in millions) Classification October 30, 2021 January 30, 2021 Assets Financing obligations Property & equipment, net $ 57 $ 65 Liabilities Current Current portion of finance leases & financing obligations 31 39 Noncurrent Finance leases & financing obligations 452 461 Total financing obligations $ 483 $ 500 Consolidated Statement of Operations Three Months Ended Nine Months Ended (Dollars in Millions) Classification October 30, 2021 October 30, 2021 Amortization of financing obligation assets Depreciation and amortization 2 7 Interest on financing obligations Interest expense, net 11 30 Total financing obligations $ 13 $ 37 Consolidated Statement of Cash Flows Nine Months Ended (Dollars in Millions) October 30, 2021 Cash paid for amounts included in the measurement of financing obligations Operating cash flows from financing obligations $ 30 Financing cash flows from financing obligations 25 Proceeds from financing obligations 8
Summary of Future Financing Obligation Payments	The following table summarizes future financing obligation payments by fiscal year: October 30, 2021 (Dollars in millions) Financing Obligations 2021 $ 16 2022 73 2023 71 2024 67 2025 58 After 2025 486 Total lease payments $ 771 Non-cash gain on future sale of property 207 Amount representing interest ( 495 ) Financing obligation liability $ 483
Summary of Weighted-Average Remaining Term and Discount Rate for Financing Obligations	The following table summarizes the weighted-average remaining term and discount rate for financing obligations: October 30, 2021 January 30, 2021 Weighted-average remaining term (years) 10 8 Weighted-average discount rate 9 % 7 %

Stock-Based Awards (Tables)

Stock-Based Awards (Tables)	9 Months Ended
	Oct. 30, 2021
Share-based Payment Arrangement [Abstract]
Summary of Stock-Based Awards Activity	The following table summarizes our stock-based awards activity for the nine months ended October 30, 2021: Stock Options Nonvested Stock Awards Performance Share Units (Shares and Units in Thousands) Shares Weighted Shares Weighted Units Weighted Balance - January 30, 2021 36 $ 52.15 3,451 $ 32.09 1,037 $ 49.95 Granted — — 657 55.83 220 58.55 Exercised/vested ( 23 ) 54.00 ( 1,126 ) 35.36 ( 211 ) 72.21 Forfeited/expired ( 1 ) 51.27 ( 170 ) 33.47 ( 33 ) 30.42 Balance - October 30, 2021 12 $ 48.66 2,812 $ 36.25 1,013 $ 47.82

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	9 Months Ended
	Oct. 30, 2021
Earnings Per Share [Abstract]
Computation of Basic and Diluted Net Income (Loss) Per Share	The information required to compute basic and diluted Net income (loss) per share is as follows: Three Months Ended Nine Months Ended (Dollar and Shares in Millions, Except per Share Data) October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 Numerator—Net income (loss) $ 243 $( 12 ) $ 639 $( 506 ) Denominator—Weighted-average shares: Basic 145 154 151 154 Dilutive impact 2 — 2 — Diluted 147 154 153 154 Net income (loss) per share: Basic $ 1.67 $( 0.08 ) $ 4.24 $( 3.28 ) Diluted $ 1.65 $( 0.08 ) $ 4.19 $( 3.28 )
Schedule of Anti-dilutive Securities Excluded from Diluted Net Income (Loss) Per Share	The following potential shares of common stock were excluded from the diluted Net income (loss) per share calculation because their effect would have been anti-dilutive: Three Months Ended Nine Months Ended October 30, 2021 October 31, 2020 October 30, 2021 October 31, 2020 Anti-dilutive shares 3 6 3 6

Basis of Presentation - Additio

Basis of Presentation - Additional Information (Details)	Jan. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Change in Accounting Principle, Accounting Standards Update, Adopted [true false]	true
Accounting Standards Update [Extensible Enumeration]	us-gaap:AccountingStandardsUpdate201912Member
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false]	true

Revenue Recognition - Schedule

Revenue Recognition - Schedule of Net Sales by Line of Business (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 30, 2021	Oct. 31, 2020	Oct. 30, 2021	Oct. 31, 2020
Disaggregation Of Revenue [Line Items]
Net Sales	$ 4,600	$ 3,979	$ 12,934	$ 9,814
Net Sales [Member]
Disaggregation Of Revenue [Line Items]
Net Sales	4,366	3,779	12,251	9,152
Net Sales [Member] | Women's [Member]
Disaggregation Of Revenue [Line Items]
Net Sales	1,165	1,025	3,626	2,569
Net Sales [Member] | Men's [Member]
Disaggregation Of Revenue [Line Items]
Net Sales	933	711	2,562	1,672
Net Sales [Member] | Home [Member]
Disaggregation Of Revenue [Line Items]
Net Sales	680	700	1,923	1,840
Net Sales [Member] | Children's [Member]
Disaggregation Of Revenue [Line Items]
Net Sales	678	593	1,609	1,257
Net Sales [Member] | Footwear [Member]
Disaggregation Of Revenue [Line Items]
Net Sales	476	389	1,326	959
Net Sales [Member] | Accessories [Member]
Disaggregation Of Revenue [Line Items]
Net Sales	$ 434	$ 361	$ 1,205	$ 855

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Details) - USD ($) $ in Millions	9 Months Ended
	Oct. 30, 2021	Jan. 30, 2021	Oct. 31, 2020
Disaggregation Of Revenue [Line Items]
Rewards Program unredeemed gift cards and merchandise return cards liabilities	$ 273	$ 339	$ 272
Net Sales [Member]
Disaggregation Of Revenue [Line Items]
Revenue recognized	$ 138

Debt - Components of Long-term

Debt - Components of Long-term Debt (Details) - USD ($) $ in Millions	Oct. 30, 2021	Apr. 30, 2021	Jan. 30, 2021	Oct. 31, 2020
Debt Instrument [Line Items]
Effective interest rate	4.89%		5.90%	5.90%
Outstanding	$ 1,923		$ 2,467	$ 2,467
Unamortized debt discounts and deferred financing costs	(14)		(16)	(17)
Unsecured senior debt	1,909	$ 1,000	2,451	2,450
Total long-term debt	$ 1,909		2,451	2,450
Senior Notes [Member] | Senior Notes Due 2023 [Member]
Debt Instrument [Line Items]
Effective interest rate	3.25%
Debt Instrument, Interest Rate, Stated Percentage	3.25%
Outstanding	$ 164		350	350
Senior Notes [Member] | Senior Notes 4.78% Due 2023 [Member]
Debt Instrument [Line Items]
Effective interest rate	4.78%
Debt Instrument, Interest Rate, Stated Percentage	4.75%
Outstanding	$ 111		184	184
Senior Notes [Member] | Senior Notes Due 2025 [Member]
Debt Instrument [Line Items]
Effective interest rate	9.50%
Debt Instrument, Interest Rate, Stated Percentage	9.50%
Outstanding	$ 113		600	600
Senior Notes [Member] | Senior Notes 4.25% Due 2025 [Member]
Debt Instrument [Line Items]
Effective interest rate	4.25%
Debt Instrument, Interest Rate, Stated Percentage	4.25%
Outstanding	$ 353		650	650
Senior Notes [Member] | Senior Notes Due 2029 [Member]
Debt Instrument [Line Items]
Effective interest rate	7.36%
Debt Instrument, Interest Rate, Stated Percentage	7.25%
Outstanding	$ 42		42	42
Senior Notes [Member] | Senior Notes Due 2031 [Member]
Debt Instrument [Line Items]
Effective interest rate	3.40%
Debt Instrument, Interest Rate, Stated Percentage	3.38%
Outstanding	$ 500
Senior Notes [Member] | Senior Notes Due 2033 [Member]
Debt Instrument [Line Items]
Effective interest rate	6.05%
Debt Instrument, Interest Rate, Stated Percentage	6.00%
Outstanding	$ 112		113	113
Senior Notes [Member] | Senior Notes Due 2037 [Member]
Debt Instrument [Line Items]
Effective interest rate	6.89%
Debt Instrument, Interest Rate, Stated Percentage	6.88%
Outstanding	$ 101		101	101
Senior Notes [Member] | Senior Notes Due 2045 [Member]
Debt Instrument [Line Items]
Effective interest rate	5.57%
Debt Instrument, Interest Rate, Stated Percentage	5.55%
Outstanding	$ 427		$ 427	$ 427

Debt - Additional Information (

Debt - Additional Information (Details) - USD ($)	1 Months Ended		3 Months Ended			9 Months Ended		12 Months Ended
	Oct. 30, 2021	Mar. 31, 2021	Oct. 30, 2021	May 01, 2021	Oct. 31, 2020	Oct. 30, 2021	Oct. 31, 2020	Feb. 01, 2020	Apr. 30, 2021	Jan. 30, 2021
Debt Instrument [Line Items]
Senior unsecured debt	$ 1,909,000,000		$ 1,909,000,000		$ 2,450,000,000	$ 1,909,000,000	$ 2,450,000,000		$ 1,000,000,000	$ 2,451,000,000
Loss on extinguishment of debt			0	$ 201,000,000	0	201,000,000	0
Tender premium paid to tendering note holders				192,000,000		192,000,000
Non-cash write-off of deferred financing costs and original issue discounts associated with extinguished debt				6,000,000
Other fees				$ 3,000,000
Debt default amount	75,000,000		75,000,000			75,000,000
Unsecured Senior Debt [Member]
Debt Instrument [Line Items]
Long-term Debt, Fair Value	2,100,000,000		2,100,000,000		2,600,000,000	2,100,000,000	2,600,000,000			2,800,000,000
Senior Notes [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Outstanding borrowing amount	$ 0		0		$ 0	0	$ 0			$ 0
Debt instrument, maturity date	2026-10
Drawings from senior unsecured revolver	$ 1,000,000,000
Debt instrument term	5 years							5 years
Additional borrowing capacity	$ 500,000,000		$ 500,000,000			$ 500,000,000
3.375 % Notes [Member]
Debt Instrument [Line Items]
Notes issued		$ 500,000,000
Interest rate on notes		3.375%
Debt instrument, maturity date description		In March 2021, we issued $500 million in aggregate principal amount of 3.375% notes with semi-annual interest payments beginning in November 2021. The notes include coupon rate step ups if our long-term debt is downgraded to below a BBB- credit rating by S&P Global Ratings or Baa3 by Moody’s Investors Service, Inc. The notes mature in May 2031. Proceeds of the issuance and cash on hand were used to pay the principal, premium, and accrued interest of the notes which were purchased as part of the cash tender offer in April 2021.
Debt instrument, frequency of interest payment		semi-annual
Debt instrument interest payment beginning month and year		2021-11
Debt instrument, maturity date		2031-05

Leases - Additional Information

Leases - Additional Information (Details)	9 Months Ended
	Oct. 30, 2021Shop
Lessee, Lease, Description [Line Items]
Number of Sephora shops opened	200
Store [Member]
Lessee, Lease, Description [Line Items]
Lease extension term	5 years
Minimum [Member] | Store [Member]
Lessee, Lease, Description [Line Items]
Lease initial term	20 years
Lease renewal term	4 years
Maximum [Member] | Store [Member]
Lessee, Lease, Description [Line Items]
Lease initial term	25 years
Lease renewal term	8 years

Leases - Summary of Operating a

Leases - Summary of Operating and Finance Leases (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Oct. 30, 2021	Oct. 30, 2021	Jan. 30, 2021	Oct. 31, 2020
Assets
Operating leases	$ 2,293	$ 2,293	$ 2,398	$ 2,422
Finance leases	$ 1,389	$ 1,389	$ 708
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property, Plant and Equipment, Net	Property, Plant and Equipment, Net	Property, Plant and Equipment, Net
Total operating & finance leases	$ 3,682	$ 3,682	$ 3,106
Current liabilities:
Operating leases	142	142	161	160
Finance leases	$ 86	$ 86	$ 76
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Finance Lease Liability And Financing Obligation Current	Finance Lease Liability And Financing Obligation Current	Finance Lease Liability And Financing Obligation Current
Noncurrent
Operating leases	$ 2,537	$ 2,537	$ 2,625	$ 2,644
Finance leases	$ 1,620	$ 1,620	$ 926
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Finance Lease Liability And Financing Obligation Noncurrent	Finance Lease Liability And Financing Obligation Noncurrent	Finance Lease Liability And Financing Obligation Noncurrent
Total operating & finance leases	$ 4,385	$ 4,385	$ 3,788
Income Statement
Operating leases	71	227
Finance Leases
Amortization of leased assets	27	70
Interest on leased assets	29	81
Total operating & finance leases	$ 127	378
Cash paid for amounts included in the measurement of leased liabilities
Operating cash flows from operating leases		236
Operating cash flows from finance leases		81
Financing cash flows from finance leases		$ 71

Leases - Summary of Future Leas

Leases - Summary of Future Lease Payments (Details) - USD ($) $ in Millions	Oct. 30, 2021	Jan. 30, 2021
Operating Leases
Operating Leases, 2021	$ 69
Operating Leases, 2022	289
Operating Leases, 2023	278
Operating Leases, 2024	247
Operating Leases, 2025	234
Operating Leases, After 2025	3,541
Total lease payments, Operating Leases	4,658
Amount representing interest, Operating Leases	(1,979)
Lease liabilities, Operating Leases	2,679
Finance Leases
Finance Leases, 2021	50
Finance Leases, 2022	193
Finance Leases, 2023	176
Finance Leases, 2024	161
Finance Leases, 2025	155
Finance Leases, After 2025	2,685
Total lease payments, Finance Leases	3,420
Amount representing interest, Finance Leases	(1,714)
Lease liabilities, Finance Leases	1,706
Total
2021	119
2022	482
2023	454
2024	408
2025	389
After 2025	6,226
Total lease payments	8,078
Amount representing interest	(3,693)
Lease liabilities	$ 4,385	$ 3,788

Leases - Summary of Weighted-Av

Leases - Summary of Weighted-Average Remaining Lease Term and Discount Rates (Details)	Oct. 30, 2021	Jan. 30, 2021
Leases [Abstract]
Operating leases, Weighted-average remaining term (years)	20 years	19 years
Finance leases, Weighted-average remaining term (years)	20 years	18 years
Operating leases, Weighted-average discount rate	6.00%	6.00%
Finance leases, Weighted-average discount rate	7.00%	10.00%

Leases - Summary of Other Lease

Leases - Summary of Other Lease Information (Details) - USD ($) $ in Millions	9 Months Ended
	Oct. 30, 2021	Oct. 31, 2020
Property and equipment acquired through:
Finance lease liabilities	$ 755	$ 118
Operating lease liabilities	$ (8)	$ 140

Leases - Summary of Financing O

Leases - Summary of Financing Obligations (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Oct. 30, 2021	Oct. 30, 2021	Oct. 31, 2020	Jan. 30, 2021
Assets
Financing obligations	$ 57	$ 57		$ 65
Liabilities
Current	31	31		39
Noncurrent	452	452		461
Total financing obligations	483	483		$ 500
Income Statement
Amortization of financing obligation assets	2	7
Interest on financing obligations	11	30
Total financing obligations	$ 13	37
Cash paid for amounts included in the measurement of financing obligations
Operating cash flows from financing obligations		30
Financing cash flows from financing obligations		25
Proceeds from financing obligations		$ 8	$ 4

Leases - Summary of Future Fina

Leases - Summary of Future Financing Obligation Payments (Details) - USD ($) $ in Millions	Oct. 30, 2021	Jan. 30, 2021
Leases [Abstract]
2021	$ 16
2022	73
2023	71
2024	67
2025	58
After 2025	486
Total lease payments	771
Non-cash gain on future sale of property	207
Amount representing interest	(495)
Total financing obligations	$ 483	$ 500

Leases - Summary of Weighted-_2

Leases - Summary of Weighted-Average Remaining Term and Discount Rate for Financing Obligations (Details)	9 Months Ended	12 Months Ended
	Oct. 30, 2021	Jan. 30, 2021
Leases [Abstract]
Weighted-average remaining term (years)	10 years	8 years
Weighted-average discount rate	9.00%	7.00%

Stock-Based Awards - Summary of

Stock-Based Awards - Summary of Stock-Based Awards Activity (Details) shares in Thousands	9 Months Ended
	Oct. 30, 2021$ / sharesshares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock Options, Beginning Balance | shares	36
Stock Options, Exercised/vested | shares	(23)
Stock Options, Forfeited/expired | shares	(1)
Stock Options, Ending Balance | shares	12
Stock Options, Weighted Average Exercise Price, Beginning Balance | $ / shares	$ 52.15
Stock Options, Weighted Average Exercise Price, Exercised/vested | $ / shares	54
Stock Options, Weighted Average Exercise Price, Forfeited/expired | $ / shares	51.27
Stock Options, Weighted Average Exercise Price, Ending Balance | $ / shares	$ 48.66
Nonvested Stock Awards [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock Awards/ Share Units, Beginning Balance | shares	3,451
Stock Awards/ Share Units, Granted | shares	657
Stock Awards/ Share Units, Exercised/vested | shares	(1,126)
Stock Awards/ Share Units, Forfeited/expired | shares	(170)
Stock Awards/ Share Units, Ending Balance | shares	2,812
Stock Awards/ Share Units, Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares	$ 32.09
Stock Awards/ Share Units, Awards/Units, Weighted Average Grant Date Fair Value, Granted | $ / shares	55.83
Stock Awards/ Share Units, Weighted Average Grant Date Fair Value, Exercised/vested | $ / shares	35.36
Stock Awards/ Share Units, Weighted Average Grant Date Fair Value, Forfeited/expired | $ / shares	33.47
Stock Awards/ Share Units, Weighted Average Grant Date Fair Value, Ending Balance | $ / shares	$ 36.25
Performance Share Units [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock Awards/ Share Units, Beginning Balance | shares	1,037
Stock Awards/ Share Units, Granted | shares	220
Stock Awards/ Share Units, Exercised/vested | shares	(211)
Stock Awards/ Share Units, Forfeited/expired | shares	(33)
Stock Awards/ Share Units, Ending Balance | shares	1,013
Stock Awards/ Share Units, Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares	$ 49.95
Stock Awards/ Share Units, Awards/Units, Weighted Average Grant Date Fair Value, Granted | $ / shares	58.55
Stock Awards/ Share Units, Weighted Average Grant Date Fair Value, Exercised/vested | $ / shares	72.21
Stock Awards/ Share Units, Weighted Average Grant Date Fair Value, Forfeited/expired | $ / shares	30.42
Stock Awards/ Share Units, Weighted Average Grant Date Fair Value, Ending Balance | $ / shares	$ 47.82

Stock-Based Awards - Additional

Stock-Based Awards - Additional Information (Details) - shares	9 Months Ended
	Oct. 30, 2021	Feb. 01, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock warrants, issued		1,747,441
Warrant [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vested warrants	698,977
Unvested warrants	1,048,464

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details)	9 Months Ended
	Oct. 30, 2021
Income Tax Disclosure [Abstract]
Federal statutory tax rate	35.00%

Net Income (Loss) Per Share - C

Net Income (Loss) Per Share - Computation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Oct. 30, 2021	Oct. 31, 2020	Oct. 30, 2021	Oct. 31, 2020
Earnings Per Share [Abstract]
Numerator—Net income (loss)	$ 243	$ (12)	$ 639	$ (506)
Denominator—Weighted-average shares: Basic	145	154	151	154
Dilutive impact	2		2
Weighted average shares, Diluted	147	154	153	154
Basic	$ 1.67	$ (0.08)	$ 4.24	$ (3.28)
Diluted	$ 1.65	$ (0.08)	$ 4.19	$ (3.28)

Net Income (Loss) Per Share - S

Net Income (Loss) Per Share - Schedule of Anti-dilutive Securities Excluded from Diluted Net Income (Loss) Per Share (Details) - shares shares in Millions	3 Months Ended		9 Months Ended
	Oct. 30, 2021	Oct. 31, 2020	Oct. 30, 2021	Oct. 31, 2020
Earnings Per Share [Abstract]
Anti-dilutive shares	3	6	3	6